Enhancing cooperation between Indonesia and the EU

Enhancing cooperation between Indonesia and the EU

Retno L.P. Marsudi, Jakarta

In the last five years, Indonesia and the European Union (EU)
have enjoyed good relations. The two were able to develop a
mature and frank political dialog based on mutual respect and
mutual benefit. In the future, the dialog will be strengthened
and institutionalized through regular, ministerial EU Troika
meetings, as agreed in the bilateral meeting between the
Indonesian foreign minister and EU Troika delegates on Thursday.

However, a good political relationship is not the ultimate aim
of bilateral engagement, but rather it signifies an important
tool to develop further cooperation between the two. The good
political will of Indonesia and the EU, to improve their
relations, will only materialize if they can further their
cooperation for the benefit of the people.

If we study the program priorities established by the new
government of Indonesia, the Council of European Ministers of
Foreign Affairs' Conclusion on Indonesia, and taking into
consideration the results of the bilateral meeting, Indonesia-
Troika EU, it is obvious that the two share some common features
in shaping the future direction of bilateral cooperation.

In terms of combating terrorism, Indonesia shows willingness
to cooperate with individual countries of the EU, but not under
the framework cooperation with the European Commission (EC). The
commission's advance team was here two years ago, but there have
been no further developments to date.

At least, the EC had indicated some vehicles of cooperation
that could be used, including through the Rapid Reaction
Mechanism, as well as through the National Indicative Program
2005-2006. Hopefully, cooperation on such important issues can be
implemented soon.

It is also worth noting that the European Commission, and some
EU member countries, were among avid supporters of the Indonesian
initiative to hold an interfaith dialog within the ASEM framework
here, next year. This initiative was aimed at fostering mutual
understanding and mutual respect between all faiths or religions
in Asia and Europe, and making recommendations to actualize
interfaith harmony within the international community .

In cooperation to boost trade, the EU is Indonesia's second
most significant trading partner after Japan. In the last three
years, bilateral trade between the EU and Indonesia increased 3
percent per year, and reached US$14,7 billion in the year 2003.
However, this figure remains far from the expected total, and far
less than the potential of the two, given the huge population of
the two countries and the complimentary nature of their products.

Some impediments exist in this bilateral trade, including the
standardization, certification and health requirements that make
it difficult for Indonesian products to enter the European
market. Taking into consideration the significant role of trade
in boosting economic growth and eradicating poverty, it is high
time that Indonesia and the EU spare no effort in improving
bilateral trade.

In development cooperation, a program related to trade support
does exist, hence this program should be continued, and
maintained in future discussions of the design of the
development-cooperation program.

In cooperation to encourage EU investment, one of the top
priorities of the new government it to boost foreign direct
investment to Indonesia. So far, the EU has been the biggest
foreign investor in Indonesia. But again the quantity of EU
foreign direct investment in Indonesia

Some of the reasons why the EU's investors have adopted a
"wait and see" attitude lie in the domestic situation here.
However, it is hoped that the bold intention of the new
government to reform all areas related to investment will be the
first step toward encouraging investors back to Indonesia.

The Troika delegation has left Indonesia and all positive
messages have been sent out. What is left now is the real work,
to follow up on all the good intentions and results of that
meeting.

The article reflects the personal views of the writer, who is
now the director of west European affairs at the department of
foreign affairs.